For more than a year, mandatory arbitration agreements have been illegal in California nursing homes. Instead, patients at facilities in San Diego can only be asked to sign voluntary binding arbitration agreements. Over the last year, the Centers for Medicare and Medicaid Services (CMS) has been working on a federal rule that would prohibit forced arbitration agreements in nursing homes across the country, permitting facilities instead to have only voluntary binding arbitration agreements (like those in California). Yet according to a recent article in The New York Times, even voluntary binding arbitration agreements can put a nursing home resident in a vulnerable position in relation to a facility. Should we be talking about banning all arbitration agreements if we want to ensure patients get justice when nursing home abuse happens?
No Legal Recourse for Harmed Patients in Arbitration?
As the article in The New York Times explains, federal rules concerning forced arbitration agreements in nursing homes will soon be finalized. However, are those protections sufficient to ensure that nursing homes are held accountable when nursing home abuse or neglect occurs? As a brief reminder, arbitration agreements—both those that are “forced” or required for a patient to enter a nursing home, as well as those that a patient agrees to voluntarily upon entering a facility—require patients and their families to settle legal issues “through private arbitration rather than through lawsuits.”